IAC Misses Revenue Forecast as Google’s AI Overviews Erode Search, Shares Slide

Management trimmed its 2025 profit forecast following one-time costs, citing a deteriorating search backdrop.

Overview

Overall revenue fell 8% to $589.8 million, missing the $601.6 million consensus from LSEG.
Search revenue dropped 41% as Google algorithm changes and AI Overviews reduced clicks to IAC’s sites.
Adjusted core profit slid 59% to $29.1 million after about $15 million in severance at People, and the stock fell roughly 9%–10% after hours.
People’s digital revenue rose 9% and it signed a Microsoft Copilot licensing deal, even as ad revenue declined 3% on lower programmatic impressions.
IAC lowered its 2025 adjusted EBITDA outlook to $234 million–$258 million, and Care.com revenue decreased 5% on weaker subscriptions.